RE: [nc-budget] NEXT STEPS IN THE ADMINISTRATION OF DNSO VOLUNTARY FUND

["Gomes, Chuck" <cgomes@verisign.com>]

Sounds okay to me.

Chuck

-----Original Message-----
From: Cochetti, Roger [mailto:RCochetti@verisign.com]
Sent: Monday, April 16, 2001 6:52 PM
To: 'nc-budget@dnso.org'
Subject: [nc-budget] NEXT STEPS IN THE ADMINISTRATION OF DNSO VOLUNTARY
FUND


I believe that we now have an agreement in principal with ICANN management
over the administration of the funds that will be voluntarily collected,
which should now pave the way for our actual solicitation of donations.

I will ask ICANN management to draft an MOU that describes in greater detail
how the funds will be administered for us by them, addressing specifically:

*to whom checks should be made payable
*what reports we will receive on the condition of the funds
*to whom we should address instructions on disbursements
*how long we should expect it to take for such instructions to be executed
*how ICANN management will advise us if they conclude that they cannot
comply with a disbursement instruction

If you have any thought son any additional areas in which we need
clarification from ICANN management, please let me know asap.

In addition, I believe that we now need a Names Council Resolution that sets
forth the procedures for authorizing disbursements of these funds (i.e. who
has the authority to instruct ICANN management to make a disbursement).  My
suggestion is that the Names Council delegate to the Budget Committee the
authority to authorize expenditures from (by majority vote of the full
membership of the Committee) the voluntary funds of up to $10,000 and that
expenditures of greater than $10,000 be approved by the full Names Council.

Separately, I believe that the Names Council should delegate the same
limited spending authority to the Budget Committee for funds in the assessed
dues from the DNSO Constituencies.

Without these delegations of authority, it could appear that every single
expenditure of both voluntary and assessed funds would require the approval
of the entire Council, which seems a great waste of their time, particularly
since the Council already approved a budget.  

Rather than call another meeting of the Budget Committee to discuss these
two proposals (two delegations of authority from the Council to the
Committee) I thought I'd circulate them and ask for your comment.

Thanks     


   



-----Original Message-----
From: M. Stuart Lynn [mailto:lynn@icann.org]
Sent: Thursday, April 12, 2001 11:15 PM
To: Cochetti, Roger; Louis Touton (E-mail)
Cc: 'nc-budget@dnso.org'
Subject: [nc-budget] Re: PROPOSAL FROM NAMES COUNCIL BUDGET COMMITTEE ON
THE ADMINISTRATIO N OF DNSO VOLUNTARY FUND


Dear Roger:

Thank you for your letter conveying the Names Council resolution 
regarding ICANN administration of DNSO funds. Louis and I would like 
to confirm that we accept both the Names Council's understanding of 
ICANN's offer and acknowledge the Council's acceptance of our offer.

We look forward to being of service to the Names Council in this regard.

Stuart

At 12:19 PM -0400 4/9/01, Cochetti, Roger wrote:
>Stuart and Louis-
>
>As you will recall, over the past several months, the DNSO Names Council's
>Budget Committee has been designing a structure for the administration of
>the funds that we expect to be voluntarily donated later this year to the
>DNSO. During our consideration of this subject, ICANN management
represented
>to us that it would be willing to enter into an agreement with the Names
>Council under which ICANN management would be willing to serve as a
>custodian for the DNSO of the funds that are voluntarily donated to the
>DNSO.  Under this custodial relationship, as the Budget Committee discussed
>it with ICANN management, ICANN management would be responsible for
>faithfully executing financial decisions of the Names Council or its
>designee, unless ICANN management feels that the execution by ICANN
>management of any particular instruction would either be illegal or would
>jeopardize ICANN's tax exempt status.  These decisions would mainly involve
>the deposit or release of funds donated to the DNSO.
>
>The Council has asked the Committee to resolve this administrative matter
>quickly in order that the solicitation and generation of funds for the
>voluntary fund can get underway.  Accordingly, the NC Budget Committee
>approved the attached resolution last week in which we accept ICANN's offer
>to administer these voluntarily-collected funds under defined
circumstances.
>Because we are anxious to proceed with this matter, the Committee asks that
>you both confirm that you accept our understanding of your offer; and
>acknowledge our acceptance of your offer within five days of today.
>
>As an aside, I would note that the administration of these voluntary funds
>is distinct from  -- but not entirely un-related to -- the administration
of
>the funds that are collected from the DNSO Constituencies for dues payments
>to the DNSO.  The funds generated by the dues paid annually by the DNSO's
>seven Constituencies have been administered by ICANN management since 1999
>(without any formal agreement) and the Budget Committee will now begin an
>examination of the administration of the funds generated by assessed
>Constituency dues.
>
>Thanks for your cooperation on this,
>
>Roger Cochetti,
>Chair
>Names Council Budget Committee
>
>
>===========================================================================
=
>=========================================
>
>
>
>The NC Budget Committee resolves to accept the offer by ICANN to administer
>DNSO funds on the understanding that:
>* ICANN will charge no administration fee
>* ICANN management will dispense these funds according to instructions
>from the Names Council or its designee, unless ICANN formally notifies the
>Names Council and its Budget Committee that  to do so would either be
>illegal or jeopardize ICANN's tax status.
>
>To ensure that arrangements for the administration of DNSO funds are
>completed in a timely manner, the Budget Committee requests ICANN
>confirmation within 5 days to the arrangements outlined above.
>
>The Budget Committee further resolves that, in the event that ICANN is no
>longer willing to manage DNSO funds, it will  proceed with the
establishment
>of a custodial relationship for its voluntary funds by a non-profit
>corporation that would be organized in, and under the laws of, France;
>recognizing that this French non-profit organization may establish a bank
>account for the DNSO's voluntary fund with a bank either inside or
>outside of France.

-- 

__________________
Stuart Lynn
President and CEO
ICANN
4676 Admiralty Way, Suite 330
Marina del Rey, CA 90292
Tel: 310-823-9358
Fax: 310-823-8649
Email: lynn@icann.org